It's pretty easy. You need a sponsor (usually one of your current investors) and then there is a $100 fee annual per investor. You should have no problem getting set up. There are a few things to watch for as you start originating VA loans.
1. Make sure your processor is familar with VA loans. Like FHA loans there are several steps required for government loans that are not part of the conventional process. (case assignments, appraisal orders, etc.)
2. The qualifying process also requires you to calculate residual income and take into account the size of the household and taxes. Printout the VA Handbook from the VA website http://www.homeloans.va.gov/ls.htm and just work the first ones through the process.
3. And a caution on refinancing the VA Non-allowable fee's need to be paid by you the lender. There is also a 1% restriction on origination fee's. On a typical loan (using national lenders) the fee's total $600-$1,200. If you priced the loan tight on yield spread and discounted the origination you could end up working for free.
Good luck and welcome to serving our nations veterans and heroes.
Answer Submitted on Sun, Dec 7 2008
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